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Case Briefs

By ALM Staff | Law Journal Newsletters |
May 28, 2008

TX High Court Upholds Pro-Policyholder Ruling on Insurance for Aircraft Accidents

On Jan. 11, 2008, the Supreme Court of Texas terminated an insurer's appeal from a significant adverse ruling in AIG Aviation, Inc. v. Holt Helicopters, Inc., 198 S.W.3d 276 (Tex. App. 2006). As a result, Texas remains in a minority of jurisdictions where if an insured breaches policy terms that establish the scope of the insured risk, courts require the insurer seeking to avoid coverage to prove the existence of a causal connection between the breach and an aircraft accident for which the insured seeks coverage, notwithstanding the lack of a causation requirement in the policy itself.

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